What Out-of-Pocket Expenses and Travel Can I Deduct for Charitable Contributions?
When making charitable contributions, you may be able to deduct certain out-of-pocket expenses and travel costs, but only under specific conditions. The IRS allows deductions for expenses directly related to volunteer services for qualified charitable organizations, provided the expenses are not considered compensation for services.
Eligible Out-of-Pocket Expenses
- Unreimbursed expenses: You may deduct costs such as supplies, materials, or equipment used while performing volunteer services for a qualified charity.
- Travel expenses: You can deduct travel costs (e.g., gas, tolls, parking) if the travel is directly related to volunteer work for a qualified organization. However, meals are generally not deductible unless they are part of a qualifying event (e.g., a charity dinner where you are serving as a volunteer).
- Uniforms and supplies: Costs for uniforms, tools, or other supplies required for volunteer work may be deductible if they are not suitable for personal use.
Important Restrictions
- Expenses must be directly related to the volunteer activity and not for personal benefit.
- You cannot deduct expenses if you receive compensation or reimbursement from the charity for those services.
- Only expenses incurred while performing services for a qualified charitable organization are deductible.
Reporting Requirements
- Report charitable contributions on Schedule A (Form 1040) if you itemize deductions.
- For noncash donations valued over $5,000, you must file Form 8283 and may need a qualified appraisal.
- For donations of vehicles, boats, or airplanes over $500, you must attach a statement from the charity (often Form 1098-C).
Source:
Publication 526 - Charitable Contributions
Publication 463 - Travel, Gift, and Car Expenses
Form 8283 - Noncash Charitable Contributions
Schedule A (Form 1040) - Itemized Deductions
Publication 561 - Determining the Value of Donated Property
Disclaimer: Always verify details with the official IRS forms and instructions or consult with a tax professional. OLT (Online Taxes) provides guidance based on retrieved information but does not offer legal or tax advice.